Macroeconomic Theory and Policy

Order Description 1(a) “--- the market failure framework is limited in its ability to justify the depth and breadth of public activity”. (“Public financing of innovation: new questions”, Mariana Mazzucato and Gregor Semieniuk) Use both prescribed research papers by Mazzucato (and other readings) to critically evaluate the above statement. …………………………………………………………………………………………………………….. 1(b) In the research paper: “The demise of US economic growth: Restatement, rebuttal and reflections” Robert Gordon puts forward a case for slower future growth in the US based on certain “headwinds”. Take two of these headwinds and critically evaluate their likely effects on future growth.